Aggregator

Trucking Stocks Tumble As Supreme Court Ruling Risks "Extinction Event" For Freight Brokers

Zero Rss
2 months 4 weeks ago
Trucking Stocks Tumble As Supreme Court Ruling Risks "Extinction Event" For Freight Brokers

The US Supreme Court ruled late Thursday morning that freight brokers can face state-law negligent hiring claims when they hire unsafe trucking firms that later cause crashes.

FreightWaves founder Craig Fuller responded to the ruling on X, saying, 

OMG, this is the most pivotal moment in trucking history since Deregulation. It could be an extinction event for 30-50% of all freight brokers.

OMG, this is the most pivotal moment in trucking history since Deregulation.

It could be an extinction event for 30-50% of all freight brokers.

Matt Lefler and I will be on the air at 11AM ET to discuss. Live, streaming on X. https://t.co/sc3eKgWV3S

— Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) May 14, 2026

In other words, this decision will raise liability costs across the freight industry but could force out unsafe trucking firms, some of which have hired illegals.

Landmark win for trucking safety this morning.

The Supreme Court rules UNANIMOUSLY against the broker that helped put the illegal alien who hit Dalilah Coleman on the road.

As a result of this decision, trucking brokers can be liable for negligently giving loads to illegal… https://t.co/0pYntFxiDx

— Senator Jim Banks (@SenatorBanks) May 14, 2026

The case, Shawn Montgomery v. Caribe Transport II, US, No. 24-1238, centers on C.H. Robinson, which arranged a shipment carried by Caribe Transport II. The carrier's driver struck Shawn Montgomery's tractor-trailer in Illinois, causing severe and permanent injuries. Montgomery alleged that C.H. Robinson should have known Caribe posed safety risks given its poor federal safety rating.

Justice Amy Coney Barrett, writing for the High Court, said the Federal Aviation Administration Authorization Act does not shield brokers from such claims because states retain authority over safety "with respect to motor vehicles." The ruling reverses the Seventh Circuit and sends the case back for further proceedings.

Justice Brett Kavanaugh, joined by Justice Samuel Alito, said the case was close but agreed that Congress did not intend to leave brokers in a "black hole" with no meaningful safety accountability. He also acknowledged that the ruling could lead to higher litigation, insurance, and due diligence costs, which may ultimately raise shipping costs.

The Trump administration urged the justices to rule against Montgomery's claim, saying that allowing liability for freight brokers under state tort law would create regulatory nightmares for the nation's freight transport industry.

Bloomberg litigation analyst Holly Froum noted:

CH Robinson, Landstar, JB Hunt Dealt Costly Supreme Court Ruling

Trucking brokers including CH Robinson, Landstar along with companies with transportation brokering operations like JB Hunt, Werner Enterprises and others were dealt a setback by the US Supreme Court's May 14 ruling allowing states to impose personal-injury liability for trucking accidents. A majority of the justices found that state law negligent hiring claims could continue and weren't preempted by federal law, as we expected they would.

Shares of C.H. Robinson and Landstar fell after the ruling, while JB Hunt moved higher.

Trucking advocacy group American Truckers United stated on X, "A bomb has dropped on the criminal freight brokers!"

Tyler Durden Thu, 05/14/2026 - 12:40
Tyler Durden

Are Markets F***ed? Collum And Pomboy To Address Everything Bubble

Zero Rss
2 months 4 weeks ago
Are Markets F***ed? Collum And Pomboy To Address Everything Bubble

LIVE NOW:

https://t.co/VzsW6va0Px

— zerohedge (@zerohedge) May 14, 2026

*************

As the S&P continues to reach new highs in the mid 7000s, leaving the COVID era 3000s as a forgotten fevered dream… and AI euphoria fueling increasingly speculative bets across Wall Street and Main Street, the sane among us need to ask the question: when will reality hit?

In tonight’s ZeroHedge debate, hosted by the legendary Dave Collum, Macro Mavens founder Stephanie Pomboy and Michael Lebowitz will break down the most dangerously overvalued sectors of today’s market. From AI to private credit… and debate how, when, and where the unwind may begin.

Nasdaq is up almost 30% since the end of March. Howbowdah?

— Dave Collum (@DavidBCollum) May 13, 2026

The discussion will examine whether the AI boom has become detached from economic reality, whether Nvidia’s 43 PE ratio makes any sense, and whether private credit gating is the canary in the coal mine. With liquidity tightening beneath the surface and credit conditions deteriorating, Collum and the gang will discuss ways to preserve wealth before the cycle turns.

The conversation will also focus heavily on the Federal Reserve’s next chapter under incoming Fed Chair Kevin Warsh, whose prior statements indicate a hawkish stance… but that’s been true of past chairs before they held the helm. Is Warsh a genuine monetary hawk willing to tolerate market pain to restore credibility to the dollar and contain inflation? Or will he ultimately cave under political and financial pressure like Jerome Powell during COVID?

However, let's not forget that Warsh voted for QE and bailouts and parroted Bernanke's nonsense during the GFC.

— Michael Lebowitz, CFA (@michaellebowitz) April 21, 2026

For investors trying to position themselves ahead of what could be the next major repricing event, or for those who just want to hear about how horrible the economy really is… join Collum, Pomboy, and Lebowitz this evening.

The debate will stream live on the ZH X account and homepage at 7pm ET. See you there.

Tyler Durden Thu, 05/14/2026 - 12:20
Tyler Durden

Bessent Says US, China To Launch AI Safety Talks After Trump-Xi Meeting In Beijing

Zero Rss
2 months 4 weeks ago
Bessent Says US, China To Launch AI Safety Talks After Trump-Xi Meeting In Beijing

Authored by Tom Ozimek via The Epoch Times (emphasis ours),

Treasury Secretary Scott Bessent said on May 14 that Washington and Beijing would begin formal discussions on artificial intelligence (AI) safety protocols following meetings between U.S. President Donald Trump and Chinese leader Xi Jinping in Beijing. Bessent’s comments come as the rival powers sought to stabilize ties strained by trade disputes, the Iran conflict, and AI competition.

U.S. Treasury Secretary Scott Bessent arrives at Incheon International Airport ahead of a scheduled meeting with South Korean President Lee Jae Myung and trade talks with Chinese Vice Premier He Lifeng in Incheon, South Korea, on May 13, 2026. Kim Soo-hyeon/Reuters

Speaking to CNBC from the sidelines of the Trump–Xi summit, Bessent said the United States and China—which he described as the world’s “two AI superpowers”—were preparing to establish a framework on AI best practices and safeguards aimed at preventing advanced models from falling into the wrong hands.

“The two AI superpowers are going to start talking,” Bessent said.

“We’re gonna set up a protocol in terms of how do we go forward with best practices for AI to make sure non-state actors don’t get a hold of these models.”

Bessent said the United States would seek to embed “U.S. values” and American-led best practices into emerging global AI standards, adding that Washington was engaging Beijing from a position of technological strength.

“The reason we are able to have fulsome discussions with the Chinese on AI is because we are in the lead,” he said. “I do not think we would be having the same discussions if they were this far ahead of us.”

The remarks came as Trump and Xi concluded the first major round of meetings during Trump’s two-day visit to Beijing, his first trip to China since returning to office for a second term.

In a White House readout issued after the meeting, Washington said the leaders discussed expanding economic cooperation, increasing Chinese investment in the United States while expanding market access for American businesses into China, boosting Chinese purchases of U.S. agricultural products, and maintaining freedom of navigation through the Strait of Hormuz.

A subsequent White House readout said both countries agreed that the Strait of Hormuz must remain open to “support the free flow of energy.” The strait is a key maritime chokepoint that normally handles around one-fifth of global energy shipments but has been heavily restricted by Iran amid its war with the United States and Israel.

The readout noted that Xi expressed Beijing’s opposition to the militarization of the strait or to Iran charging tolls for use of the critical waterway. Both countries also agreed that Iran “can never have a nuclear weapon.”

AI, Chips, and Investment Talks

AI and semiconductor policy were among the issues discussed at the summit, Bessent told CNBC, with the U.S. delegation’s visit set against a backdrop of intensifying competition between Washington and Beijing over advanced computing technologies with military and economic applications.

Bessent said he expected a major “step-function jump” in upcoming AI model releases from Google and OpenAI. He also addressed the ongoing debate over potential U.S. approvals for Nvidia’s sales of advanced AI chips to Chinese companies.

When asked about reports that Washington had cleared sales of Nvidia’s H200 AI chips to several major Chinese technology companies, Bessent said there had been “a lot of back and forth” on the issue but did not indicate that any finalized agreement had been struck.

Nvidia Chief Executive Jensen Huang joined Trump’s delegation to China alongside a large group of U.S. corporate executives, including leaders from Tesla, Apple, BlackRock, Boeing, and Qualcomm.

The H200 chip, part of Nvidia’s Hopper line of AI processors, is significantly more powerful than the export-restricted H20 chip previously designed for the Chinese market. Critics in Washington have argued that allowing Beijing access to such advanced chips could accelerate China’s military modernization and narrow the U.S. advantage in AI.

“The H200 is one of the most advanced AI chips on the market, and it is currently used to produce frontier AI systems with military applications,” a group of U.S. lawmakers wrote in a December 2025 letter expressing concern about the Trump administration’s decision to permit H200 sales to China, arguing that it “undercuts” national security.

At the same time, administration officials and some technology advisers have argued that controlled sales could preserve U.S. technological dominance while generating revenue for U.S. companies and taxpayers.

“This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers,” Trump wrote in a December 2025 social media post, noting that sales of the H200 would only go to “approved customers in China.”

David Sacks, chair of the president’s Council of Advisors on Science and Technology, said at the time that he believes sales of the H200 would discourage competitors such as Chinese company Huawei.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, said in an analysis that H200s could give China’s AI computing power trajectory a threefold boost.

Catherine Yang, Owen Evans, and Troy Myers contributed to this report.

Tyler Durden Thu, 05/14/2026 - 12:00
Tyler Durden

zero rss